Mumbai: The Reserve Bank of India (RBI) has imposed a penalty of Rs 3.06 crore on Amazon Pay (India) Private Limited, the digital payment arm of e-commerce giant Amazon.
Amazon Pay has been penalised for non-compliance of some provisions related to Prepaid Payment Instruments (PPIs) and Know Your Customer (KYC) direction.
“It was observed that the entity was non-compliant with the directions issued by RBI on KYC requirements,” RBI said in a statement on Friday.
RBI had issued a showcause notice to Amazon Pay (India) asking the company why penalty should not be imposed for non-compliance with the directions.
“After considering the response, RBI concluded that the aforesaid charge of non-compliance with RBI directions was substantiated and warranted imposition of monetary penalty,” the country’s central bank and regulatory body said.
The penalty is based on deficiencies in regulatory compliance and not intended to pronounce upon the validity of any transaction or agreement entered into by Amazon Pay (India) with its customers, RBI made it clear.
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